International spot gold traded at $1, 697.20 an ounce in early Asian trading on Tuesday. Gold prices to maintain a narrow range of pressure trading pattern, the overall maintenance of the last trading day since the shock decline.
The international spot gold sub-market opened at $1702.40 / oz in early trading, rising as high as $1712.30 / oz, and dipping as low as $1690.95 / oz to close at $1695.82 / oz, down $5.36, or 0.32%.
Comex June gold futures, meanwhile, closed down 0.9 percent at $1698.00 an ounce.
Gold tumbled on Monday as the dollar strengthened and investors weighed in on fears of a new coronavirus outbreak. The number of confirmed covid-19 cases in South Korea has suddenly increased again after a period of calm, leaving the country open to the possibility of a second outbreak.
The dollar rose as much as 0.44 percent in the previous session, making metals less attractive to holders of other currencies. The market adjusted positions ahead of fed chairman colin Powell’s speech this week.
Daniel Briesemann, an analyst at commerzbank, said there appeared to be concern about a new outbreak, which could lead to a crackdown on base metals.
‘gold is under a little bit of pressure because of the dollar’s rise,’ said Phil Streible, chief market strategist at Blue Line Futures LLC in Greenwich, Ohio. At present is in the range consolidation trend.
“We are seeing very strong short-term demand for the dollar,” said Daniel Ghali, commodities strategist at TDS. Gold is also caught between a huge outlook for monetary inflation, which should support its performance, and deflationary pressures from weak economic data. But in the longer term, this macro environment should actually lead to a weaker dollar, which is part of the positive outlook for gold.”
Novel coronavirus invades the White House coronavirus invades the White House coronavirus as the United States strongly calls for a resumption of work to restart the economy
In the United States, according to Worldometers real-time statistics show that, as of May 12, 2006 Beijing time at 08:08, the global novel coronavirus infection cases of more than 4.24 million, of which nearly one-third of the confirmed cases occurred in the United States, the United States novel coronavirus confirmed cases of more than 1.38 million cases of 1381,665 cases, the death of more than 81,000 cases of 81,552 cases.
As the U.S. struggled to reopen its economy, a novel coronavirus outbreak erupted at the White House, vice President pence’s press secretary Katie Miller tested positive, and two other top health officials on the coronavirus task force, Anthony Fauci and Robert Reid, were under self-quarantine. So far, both pence and trump have tested negative.
The White House has asked employees working in the west wing to wear face masks, except when seated at their desks, two senior administration officials said Monday. The west wing is the administrative hub of the U.S. government, including the oval office and the offices of senior advisers.
ABC News, which first reported the News, said in a memo that the White House required all employees entering the west wing to wear masks and advised employees in other parts of the White House complex not to make unnecessary visits to the west wing.
On Monday, trump’s senior adviser, son-in-law Jared Kushner and other staff members wore face masks at the White House.
US President Donald trump said at a White House press conference on Monday that he was the one who asked the White House staff to wear a mask. According to reporters at the scene, trump appeared to be the only one who did not wear a mask, but he kept at least six feet away from the others.
Earlier in the day, the White House asked all staff members in the west wing to wear masks, and asked staff members to maintain a strict social distance and observe visitor restrictions.
The White House upgraded its response last week after a trump aide tested positive for a novel coronavirus and vice President pence’s press secretary, Katie miller, was confirmed.
A White House deputy spokesman said doctors are taking every precaution to ensure the health and safety of the President, the first family and the entire White House.
Trump also confirmed Friday that vice President mike pence tested negative for the virus that day, two days in a row, but pence did not attend the press conference.
In addition, the global outbreak has not yet been fully contained, and warnings of a second wave of infections continue to be heard. On Monday, Germany reported an exponential increase in new coronavirus infections after taking initial steps to loosen the blockade. The news has caused alarm around the world, although companies from hair salons in Paris to Disneyland in Shanghai are starting to return to work. The number of new cases in South Korea also rose to a one-month high.
Japan said on Monday it may lift its state of emergency earlier than planned for some areas where the outbreak is stable. New Zealand will relax most of its restrictions from Thursday. Britain has also made plans to ease the blockade, and French stores reopened on Monday.
With global markets still wary of the outbreak, investors need to be on alert for sharp market swings caused by sudden changes in the market’s direction.
Golden aftermarket outlook
“There is still a lot of uncertainty,” said Rhona O ‘connell, an analyst at fujitong. “some economies are starting to loosen restrictions, and others, like South Korea, are seeing infection rates come back. However, in the short term, gold prices are expected to remain stable around these levels or to fall a bit as confidence in the economic recovery increases a bit.”
Todd Horwitz, chief market strategist at BubbaTrading.com, wrote that support levels for gold, silver and platinum have been maintained for several weeks. The $1,700 level has been a floor from which gold can rebound. This pattern has slowly changed and looks weak, but it allows us to stay long throughout the process. We have concerns about gold, but we are still dependent on support.
In the week ended May 5, fund managers cut their bullish positions in gold futures, according to the latest weekly report from the commodity futures trading commission. In response, Carsten Fritsch, an analyst at Commerzbank, points out that net holdings by fund managers last fell in June. However, he gave a positive assessment of the low level of the position. “The low level of speculative interest significantly reduces the likelihood of any such pullback,” Fritsch said.
“If speculators are going to ride a wave of hype, gold could significantly pull higher, and there are good reasons to do so now,” analysts at Commerzbank said in a note. But the market still needs to focus on whether the unprecedented stimulus from the central bank and the government will cause balance sheets to soar and liabilities to soar.”